MM255 Unit 4 Solution
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Unit 4: Instructor Graded Assignment
Interest and Loan Calculations
Unit 4 focus on interest and loan concepts, which is covered in your reading of Chapter 12: “Consumer Credit.”
For this Assignment you will write an essay to address the requirements described below. Your essay must be carefully planned and written using well-constructed sentences and paragraphs. Make sure that your grammar and spelling are correct. Points will be awarded for content as well as composition. Your essay must be a minimum of 1 page in length with standard 1 inch margins and is required to have at least one reference from a reliable source. This means that you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers and that only references from reliable sources will earn points. All resources should be cited both as an in-text citation as well as being listed on a reference page in APA format.
Assignments must be submitted as a Microsoft® Word® document and uploaded to the Dropbox for Unit 4. Include your essay directly in this document following the instructions.
All Assignments are due by Tuesday at 11:59 p.m. ET of the assigned unit.
Essay Assignment (40 points)
Your Assignment is to write an essay discussing the financing of a new car for your business.
The price of the used car is $20,000. Sales tax on this car is 8.4% of the price of the vehicle. You intend to finance the entire cost of the car and sales tax, less a down payment of $1,500. You intend to finance the car for 48 months and your car payment will be $455.12 per month.
Your essay should in include the following information
1. Calculate and discuss the amount financed, the installment price of the new car, and the finance charges you will pay over the life of the loan.
2. Compare and contrast the advantage of paying cash and financing the vehicle over a shorter period...